The China Securities Regulatory Commission strictly punishes serious illegal and irregular behaviors such as technical divorce in accordance with the law.

Chairman Wu Qing of the China Securities Regulatory Commission introduced that in terms of risk prevention and confidence stabilization, faced with the complex and severe market operation situation last year, the CSRC, together with various relevant parties, improved market stability mechanisms and implemented a series of measures. They established a system for regulating program trading, completely suspended stock borrowing and short selling according to the law, optimized the mechanism for information disclosure regarding northbound trading, severely punished illegal reductions in holdings, including dealing with violations such as technical divorces, circumventing reduction of holdings, and quick cash-outs. At the same time, they actively promoted more incremental funds entering the market, and the registration and issuance of public funds significantly accelerated. The scale of equity ETFs exceeded 3 trillion yuan, and the scale of public funds holding A-share market capitalization increased from 5.1 trillion yuan at the beginning of last year to over 6 trillion yuan now, an increase of 17.4%. Through the joint efforts of all parties, investor expectations and market confidence have significantly improved.